Hello fellow BP members,
I was wondering if anyone has used ************** to purchase properties that have defaulted on their taxes. I was doing a search for properties in Riverside County, CA (Temecula/Murrieta) and saw one that caught my eye. I was too late this year to participate, however, next year is open :-).
I have the $2500 deposit required to start bidding but wanted to know what happens next? Do you just own the property outright or is their a mortgage, back taxes, liens? I would try to scope out the property first before bidding but it sound viable. Do any BP members have experience doing this? How did it turn out for you and what happened if you got the property? I'd love to hear form you!
@David Wagner I too have my a variety of accounts setup for tax lien auctions and actually took the underwriting really far for one in La Jolla last year. Even approached a possible cash investor if the price was right, but in the end somebody WAY overpaid for it (at least versus what my number was).
The big things to remember are each state has different rules on the rights of the person losing the home. In California, I think they have up to a year to try and redeem the property to which you really can't do anything with it or you run the risk of possible rehabbing only to lose it back to the original owner if they come back and pay up their taxes. You will also become responsible for any liens so if you are really serious you might consider paying for title search on the property as well.
In the end, the best way to get these deals (at least it seems to me) is to engage the person about to lose the property much like any pre-foreclosure and see if you can pay them to move on and sign over the property for pennies on the dollar. Easier said then done of course. ;)
Best of luck, would love to hear if you pull the trigger on something in the future!